PSE&G Lowering Gas Bills by 4%, Effective Sunday

On Sep 29, 2023

PSE&G announced it will lower gas bills for residential customers, effective Oct. 1. customer who use 100 therms per month will have an average monthly gas bill of about $106, or $4 less than it is now, according to the company. When added to the February 1 and March 1 gas supply rate reductions and other changes, PSE&G will have reduced average monthly gas bills by approximately $23 or 18% during 2023.

“We continue to work hard to deliver affordable, high quality, safe services while helping our customers manage their energy use and costs,” said Dave Johnson, PSE&G’s vice president customer care and chief customer officer. “We’re pleased that we will have the lowest gas bills in the state as we complete our third gas supply price reduction for residential customers this year.”

Residential natural gas rates

Following New Jersey Board of Public Utilities approval this week, the Basic Gas Supply Service (BGSS) rate is being reduced by a little over 7 cents per therm to approximately 39.7 cents per therm – reflecting a decrease in natural gas market pricing. The BGSS rate reflects the actual cost utilities pay for natural gas, and utilities do not make any money on the supply charge.

This reduction, together with a reduction in the Balancing Charge rate, offsets an increase in the Conservation Incentive Program (CIP) charge, which is designed to normalize rates due to weather and usage fluctuations. A typical PSE&G residential customer will realize a net 4% average monthly bill reduction.

PSE&G has maintained low gas rates despite market price fluctuations. The typical PSE&G residential gas customer’s bill will be approximately 35% lower than in 2008 and approximately 49% lower when allowing for inflation.

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